Baden-Württemberg Foundation

1. For the common good

The funds must only and exclusively be used for non-profit purposes as described in the Abgabenordnung (German fiscal code) and only for purposes directly related to the funded project.

Definition of research as described by tax law and the “common good” provision,

which can be roughly translated to: “intellectual activity with the goal of creating new insights in a manner that is methodical, systematic and can be verified by others and which promotes the progress of science as well as its ability to provide solutions to new challenges”.

Research is not considered to serve the common good if only established scientific facts are applied or if established facts are capitalised on as part of routine services that are rendered for a fee.

This means:

• Your research must be “new” and innovative. Measures or projects that have already begun cannot be financed or continued with funds provided by the Baden-Württemberg Foundation.

• Research results must be made available to the general public in a timely manner shortly after the conclusion of the research project.
• Beneficiaries are not allowed to use the funds for contract research, irrespective of who the client is.
• It is strictly prohibited to pass these funds on to third parties (e.g. private research facilities or businesses). This would harm the common good. This also means that you are not permitted to make part of the funds available to third parties as grants in their own right.
• A business partnership would only be acceptable if the resulting joint research project would not harm the common good. This is only acceptable if exploitation rights for third parties are awarded exclusively by the involved research institution (corporate body under public law or a corporate body under private law that is eligible for tax benefits), if this research institution has a leading position on the project and if potential exploitation rights are awarded after the timely publication of the research results. The timely general publication of the research results on the part of the research institution is obligatory as per a federal decision on the awarding of exploitation rights. This will help your joint research project keep its non-profit status. The research results must thus be made available not only to stakeholders in the industry, but to the general public as a whole.

Please note that no business (not even a business involved in a joint research project) must be granted exclusive and legally binding prior rights of use (prior to the publication of the research results). If projects are conducted in cooperation with other non-profit facilities that are eligible for tax benefits you must make sure that the funds are only spent in those areas of the company that are eligible for tax benefits (non-material areas or those associated with a particular purpose in accordance with §§ 65, 68 of the Abgabenordnung).

2. Special provisions for

a) Staff positions:

• The Baden-Württemberg Foundation can only fund additional positions that were not provided for in the state budget.
• These staff members must only be given tasks that are directly linked to the funded project.
• You must hire new staff members or previous employment contracts must have expired before the beginning of the project. Transfers of staff, e.g. from externally funded projects, are not permitted. Members of staff who had previously held budget positions can be transferred to the project if a recognisable effort is made to find a suitable replacement. This must not result in anything but short-term budget relief, e.g. in the context of a ban on hiring new staff or for the duration of a call for applications.
• Contracts may be supplemented with other funds, but you must ensure that the employee’s activities can be separated from each other clearly as regards the time spent on them. You must prepare a suitable job description or work schedule beforehand. For reviewing purposes, the actual time that the employee spends on individual tasks must be recorded and documented for the entire duration of the project.

b) Material resources:

• You may not use funds from the Baden-Württemberg Foundation to replace existing equipment.
• Consumables and equipment acquired with the foundation’s funds must only be used for the agreed project and, after its conclusion, for non-profit purposes only. This means that you cannot make further use of consumables, small equipment and so on in contract research after the project has been concluded.

c) Investments:

• Equipment must only be used for the funded project or for non-profit purposes (after the conclusion of the project). This means that under no circumstances are you permitted to use equipment bought with funds from the Baden-Württemberg Foundation for contract research.
• You may not use the foundation’s funds to replace existing equipment.
• When cooperating with partners in industry or when using this equipment in teaching you must adhere to the “common good” provisions.